Ontario Premier Doug Ford unveiled the province’s new data center framework on Thursday, emphasizing the importance of keeping Canadians’ data within Canada. The framework is centered on three key pillars: economic development, data protection and sovereignty, and community investment and public confidence.
Ford stated that the government’s new data center playbook aims to drive future economic growth, boost tax revenues, create thousands of jobs, and ensure data centers comply with regulations. The framework mandates that data centers cover their full electricity costs, encouraging them to invest in their power generation. Additionally, a separate rate class will be established for large new data centers, ensuring that costs are not transferred to Ontario families.
Ford emphasized that the province will not provide financial incentives to attract investments. The framework is seen as a crucial component of Ontario’s artificial intelligence (AI) strategy, projected to yield $122 billion in economic growth by 2035 and generate 17,000 new jobs annually.
This development comes as various municipalities in Ontario consider moratoriums on data centers. Oakville recently implemented a one-year moratorium, while Mississauga is set to vote on a similar measure in September.
Green Party of Ontario leader Mike Schreiner and Ilham Abdulkadir from Wellington Water Watchers have raised concerns about the environmental impact of data centers. Schreiner criticized the playbook, calling for stronger regulations, particularly related to water usage. He stressed the importance of community control over tech corporations and fossil fuel companies.
Ontario’s Minister of Economic Development, Vic Fedeli, highlighted the province’s commitment to prioritizing data centers that utilize closed-loop systems to reduce water consumption. Ford echoed this sentiment, emphasizing the preference for data center builds with sustainable water systems.
Schreiner and the Ontario Greens continue to advocate for a moratorium on new data centers until stringent regulations are in place to safeguard communities. The province is expected to release a report early next year to address the development and impacts of data centers in the Waterloo region.